Hello, After refinancing my home in 9/2006, (credit report was perfectly clean)! we rechecked our credit report in 10/06, only to see that a collection had been added! Before that, we had not had any lates..etc for over 10 years. We immediately called Asset Acceptance the next day and was told it was a debt for $105.00 for an electric bill that we did not pay 4 years ago. The month in question for this bill was when we moved from MN to CA. We left a forwarding address, received all other mail, but never an electric bill. In fact, we received nothing from either the Electric Co nor Asset Acceptance in those 4 years. (no letters, no phone calls) They insisted that a bill was sent to us. Naturally, not knowing any better and since we did live at the address in question for the bill in August 2002, we paid the $105. We pleaded our case with Asset, that we never received anything, despite our forwarding address...it was an unfortunate mistake, or cross in the mail and asked them to remove it from our credit reports after payment. Well, month later, it still on reports as a PAID Collection. My FICO has gone down 50+ points. Can they legally keep this on my record for 7-10 more years (they just placed it on there in 10/2006, bill in question was in 8/2002) I wrote them a letter asking that they please do the right thing, and not ruin my credit for $105 as they themselves did not contact me during the 4 years. They didn't care. I also wrote the Electric Co. in question, they replied with their "apologies" and said there was nothing they could do and only Asset Acceptance can remove this collection. Should I contact the Credit bureaus and send letter to them also asking if they would be willing to remove this collection from my report for something I knew nothing about? Why would I want to ruin my credit for $105? There has to be a way to fix this. Any suggestions? Thank you for your time...Ed

Hi Ed and welcome! I personally am not real savvy about situations such as yours. However, I am sure someone will post shortly who can help. Just my two cents though, it can't hurt to contact the credit bureaus and send letters like you stated. Also, I myself would contact Asset Acceptance again. Good Luck!

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"Never give up on someone you can't go a day without thinking about".

Unfortunately, the negative item is going to stay in your credit report because it became delinquent in the first place and went to a collection agency. You paid off the debt and it's now shown as "paid collections". There is nothing more you can do at this stage. It will be reported in your file for seven years from the date of first delinquency.

BKP- Although this bill was not confirmed by Asset Acceptance, I assumed it was mine because I did live at said address at that time. And I guess since I "paid" it, I accepted it as mine.

I am aware of how long these things stay on your report. However, I read somewhere that at the discretion of the Collection Agency, they can remove it if they choose.

Unfortunately, I've read enough on this forum to convince me that Asset Acceptance is ruthless...Got that also from talking to them on the phone.

When you said that it will be reported for 7 years from date of 1st delinquency are you talking from year 2002 (when I supposedly owed it and didn't know about it) or from 9/2006, when they placed it on my credit reports 4 years later? That would be a bummer if it was.

I'm still going to plead them once more with a certified letter and follow-up notes to the credit bureaus to let them know what had occurred (not that they care either) just in case I apply for credit and the collection is questioned.

Although most financing companies don't care, only what the FICO scores are....

Is their no mercy for not knowing that a bill existed in the 1st place?? It really burns me that I cannot apply for favorable financing because of $105.

Anybody else out there ever get anything positive from this Collection agency??

The debt has to be proven in paper before it's actually hit in your credit report. Make the CRA provide you proof of this debt. Put the item on dispute with the CRA reporting in your file. You will be sure if this debt is legit.

If the debt isn't proven by the CRA, Asset has to remove their reporting from your file. Contact the company whom you paid $105 and get the account status. If the negative info is correct, it is going to stay from your first date of delinquency. The collectors reage the dates for keeping the negative information for longer period. You must be able to dispute the re-aged dates with the CRA.

Here is a different twist to remove it.Since you already paid them,I highly doubt they will delete it.Start a dispute with the cra's,if Asset fails to note account as being disputed,use fcra violation and force delete.Some collection agencies are known for not following fcra and being slow to resond after they have received their money. Fcra=fair credit reporting act

Endoreen. The bureaus won't remove it if you acknowledge that you paid it.

Best thing to do is to dispute it with the reason that it's not yours. If Asset Acceptence doesn't respond, then it gets removed.

Best case....it gets removed

Worst case...It stays for 7 years.

Jessie, Guess I'm really confused. If the bureaus won't remove it if I already paid it, how can I dispute it? It already shows up on the reports as being a "paid collection".

Guess I can only dispute the 4 year delay in putting it on the report by AA and that I didn't receive any bills or phone calls for that time period. Maybe the most I can do is get the timeline down to 3 years before it gets removed since its an "aged" unknown collection made by AA?

How about those agencys that claim to "fix your credit"? would hate to use one for a lousy $105 collection, being what they charge, but at my age, I don't want negative remarks on my credit. Anyone know of any reputable ones that has been used?

Has anyone heard of these places?
lexingtonlaw.com
nwbusinessadvisors.com